Nov 2015

Digital Strategy

JM Financial India Conference

Multiple Players – searching for spaces to occupy (aggregators,

banks, payment banks). First mover advantage.

Recognition that Digitization can both enhance and replace

delivery models

2

Emerging Digital Scenario in Financial Services

Digital Noise

How to measure digital success

Threat from Payment Banks

Compete or Collaborate

The future of wallets and App Fatigue

Will branches disappear or reconfigure

How not to lose the “eyeballs” of customers

3

FAQs around Digital Banking

Focus on “digital” channels as core across lifecycle and not as alternate

Technology focused on “finding”, “serving” and “engaging” customers

Creating different “dining experiences” from one kitchen menu

Convenience does not imply faceless banking; human connect remains

critical

Partnerships will provide the “context” or “application” for frictionless

banking

Strategy must generate productivity, profitability and efficiency

4

Our Take: Management Beliefs - Digital

Digital Strategy more important than Technology

5

Technology is not an advantage per se:

Available off the shelf unless the technology is highly proprietary

Limited lag time of 3 - 6 months between competitive actions

Our transactions already use technology comprehensively - 85% of

transactions electronic (Range: 80%-90% for top private sector banks)

However an integrated Digital Strategy can extract significant value via:

1. Innovation as Service Differentiator

2. Transformation to Online Offerings

3. Partnering with the Digital Ecosystem

4. Evolution to Online and Digital Channels

5. Improved Decision Making & Analytics

6. Operating Efficiency in Front & Back Office

6

Innovation as a Service Differentiator

Video Branch

Choose denomination at the ATM

Account Number of Choice Instantly redeem credit card reward points

Cheque images on account statement Mobile transfers with cardless

access at our ATM

1

Transformation to Online Offerings

7

Assets

Personal Loans New and Pre Approved

Credit Cards New and Pre Approved

Car Loan LAP Gold

Liability

New Savings Account

A/c Upgrades Card Upgrades RD FD

Investments ,

Payments.

Health Insurance

Life Insurance Mutual Funds

Lockers Others

Tax Filling Assistance

In Progress

We are now ready to offer a comprehensive product suite to our customers through the Digital Channels

Travel Booking Bill Payments

FOREX

Launched

PMSBY/PMJJBY

Funds Transfer Abroad

New

2

Online Financial Aggregators

E Marketplaces

Fin Tech companies – Wallet powering

BIN Sponsors for Merchant

Aggregators

Loyalty Programmes and

Campaigns

Payment Network Providers

Turn Key Technology Solutions

Business Correspondent

8

Partnering with the Digital Ecosystem 3

Social Networking Portals

Tech Partnerships

Evolution to Online & Digital Channels

9

Aggregators

Marketplace Partnerships

Efficient Use of Own Channels

ATM

Personali

zation

Website/

Indusnet

Mobile

App

Snapdeal – 2 Wheeler Sale

Car Dekho – Website Content Solution

Social Banking: Facebook & Twitter

Digital

Branch

4

10

Improved decision making and analytics

Progenie Mobility Solution

Tab based sales generation deployed in

~1,400 locations. Only images and data flow.

Multi party linkages e.g. CIBIL & field

verification. Credit Decisioning for 2W < 2

hours. Leadership in 2W !

5

11

Operating Efficiency in Front & Back Office

Front Office Examples

Alternate channels: Virtual & Tele RMs

360 degree customer view Analyzed pricing Context specific product offers Customer Relationship

Management Corporate Banking portal and

Mobility solutions Digital vertical with digital business

heads Direct Connect to Call Centre

Back Office Examples

Collections via hand held devices Parallel processing at Mumbai and

Chennai hubs to free up capacity Continuous improvement: 100’s of

projects via “just-do-it” initiatives Usage of cloud based solutions to

host applications and provide low cost access in remote locations

Fraud and AML alerts on in flight transactions

Solution Delivery Team Employee certification programmes API based integration

6

Thank You